PROBLEM 6 From the following statement of Net Profit of Renuka Ltd. explain the changes in 2010 in the light of condition prevailing in 2009. 2009 2010 Gross sales 15,300 18,360 Less : Returns and discount 300 350 Net sales 15,000 18,010 Less: Cost of sales 9,100 10,125 Gross profit on sales 5,900 7,885 Operating expenses : Selling expenses 3,000 3,300 Administrative expenses 1,500 1,700 4,500 5,000 Operating profit 1,400 2,885 Other income 150 200 Total income 1,550 3,085 Other expenses 200 300 Net Profit 1,350 2,785